The Securities Appellate Tribunal (SAT) on Friday dismissed all appeals filed by minority shareholders of Tamilnad Mercantile Bank (TMB) against its upcoming initial public offering (IPO). The public offer will open on Monday and close on Wednesday.
“All the appeals have been dismissed as there is no merit in them,” a bench headed by Justice Tarun Agarwal said. Awaiting detailed order.
“Shareholders may prefer to appeal to the Supreme Court; However, the final decision has not been taken yet. There was a demand for a ban on the IPO.
He cited concerns over the scrapping of the Offer for Sale (OFS) and the decision-making process of the Securities and Exchange Board of India (SEBI) in approving the public offering. The bank had originally planned an OFS and a fresh issue of shares while filing the Draft Red Herring Prospectus (DRHP) in September 2021. However, it later set aside the decision on OFS.
Investors argued that TMB needs to file DRHP afresh with SEBI. However, the regulator did not find merit in the argument and did not ask the bank to file a fresh DRHP, instead allowing it to go ahead with its public issue. Due to this, the three investors filed a petition before SAT to pronounce the verdict on the matter.
The minority shareholders opposed SEBI’s exemption on the ground that the shareholder resolution empowered the board to revise the size of the OFS only and not to cancel it outright. SAT rejected this argument.
Meanwhile, the bank said it has raised 363.53 crore from 10 anchor investors by allotting over 7.12 million equity shares 510 per.
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